Stratasys Ltd. and Desktop Metal Inc. announced a definitive agreement for the companies to combine in an all-stock transaction valued at approximately $1.8 billion. The combination unites the polymer strengths of Stratasys with the complementary industrial mass production leadership of Desktop Metal’s brands, which include production metal, sand, ceramic and dental 3D printing solutions.
The transaction establishes what is expected to be one of the largest companies in the additive manufacturing industry, targeting $1.1 billion in 2025 revenue. Future opportunities are also positive, as industry growth to more than $100 billion is expected by 2032. The transaction is expected to be completed in the fourth quarter of 2023.
“Today is an important day in Stratasys’ evolution,” said Yoav Zeif, CEO of Stratasys. “The combination with Desktop Metal will accelerate our growth trajectory by uniting two leaders to create a premier global provider of industrial additive manufacturing solutions. … We look forward to building on the complementary strengths of the combined business and leveraging the strong brand equity across the portfolio to deliver enhanced value to shareholders, customers and employees.”
“We believe this is a landmark moment for the additive manufacturing industry,” said Ric Fulop, co-founder, chairman and CEO of Desktop Metal. “The combination of these two great companies marks a turning point in driving the next phase of additive manufacturing for mass production.”
Following the close of the transaction, Zeif will lead the combined company as CEO, with Fulop as chairman of the board. The combined company’s board of directors will have 11 members, with five chosen by Stratasys and five chosen by Desktop Metal, plus Zeif as CEO. Stratasys Chairman Dov Ofer will serve as lead independent director of the combined company.
The combined company will enjoy complementary IP portfolios with more than 3,400 patents and pending patent applications. Stratasys and Desktop Metal invested more than $500 million in R&D over the last four fiscal years, and will share R&D and engineering teams with more than 800 scientists and engineers — one of the largest in the industry. They will also share a base of more than 27,000 industrial customers across many industries.
The boards of directors of both companies unanimously approved terms of the agreement, which will see Desktop Metal stockholders receive 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock. Following the closing of the transaction, existing Stratasys shareholders will own approximately 59 percent of the combined company, and legacy Desktop Metal stockholders will own approximately 41 percent, in each case, on a fully diluted basis.
Stratasys is headquartered in Eden Prairie, Minn., and Desktop Metal has its headquarters in Burlington, Mass.
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